Winning Bizness Desk
Mumbai. Online hotel booking company OYO has turned a profit for the first time in a financial year as the company's net profit in FY 2024 registered Rs 100 crore. Ritesh Agarwal, the founder of the company, wrote on X, "While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY 24 have me humbled as well. Our first financial year with a net profit of around Rs 100 crores. This is the eighth consecutive quarter of positive EBITDA and we also have a cash balance of around ₹ 1000 crore." He added that global credit rating firm Fitch has also noted our improved performance and strong cash flow, thereby improving our credit rating.
Growth in other markets including not only India but Nordic, US and UK
Ritesh Aggarwal said that I am seeing growth not only in India but also in other key markets like Nordic, South East Asia, US and UK with emerging tourism trends, spiritual travel, business travel and destination weddings. Global credit rating firm Fitch Ratings earlier this week downgraded Oyo's parent company Oravel Stage from 'B-' to 'B'. According to media reports, OYO has added around 5 thousand hotels and 6 thousand houses on its platform in the financial year 2023-24. In 2013, Ritesh Aggarwal started OYO with an initial investment of ₹ 82 lakh, when he was 19 years old.
OYO to raise draft again for early IPO
Oyo is preparing to file a draft red herring prospectus (DRHP) again for its IPO. News agency PTI had reported on May 18 that Oyo is going to finalize its re-financing plans soon to raise $450 million through the sale of dollar bonds. JP Morgan could be the lead banker for the refinancing through the sale of dollar bonds at an estimated annual interest rate of 9% to 10%. Oyo has earlier filed a pass application with market regulator Securities Exchange Board of India (SEBI) to withdraw its existing DRHP. The Company intends to file an updated DRHP with SEBI after the bond issue. DRHP is the document which contains the necessary information about the company planning to IPO. It is filed with SEBI. It provides important information about the company's finances, its promoters, the risks of investing in the company, the reason for raising funds, how the funds will be utilized, among other things.
